In 2013, the GEFCO Group, a global player in industrial logistics and the European leader in automotive logistics, recorded a turnover of 4 billion euros, up more than 11% on its result for 2012. Current operating income stands at 95.5 million euros, for a net profit of 55 million euros, up 28%. In the words of Luc Nadal, Chairman of the GEFCO Executive Board: “Despite the difficulties with the economy in Europe, our results for 2013 were satisfactory and in line with our expectations. They demonstrate that our customers recognise the unique expertise that GEFCO has in supply chain optimisation. They are also tangible proof that we are a financially sound organisation which is pursuing the right strategy for geographical and cross-sector diversification.”
Operational and financial results in line with expectations
|
2012 |
2013 |
Var. 2013/2012 |
|
| Turnover (in billions €) |
3.602 |
3.993 |
+ 11% |
| Current Operating Income (M€) |
109 |
95.5(*) |
– 12% |
| Net profit (M€) |
43 |
55 |
+ 28% |
(*) Figure includes the €24 M integration costs for the start of 4PL (**) operations with GM
(**) 4PL: “Fourth Player Logistics”.
In 2013, the turnover for the GEFCO group approached 4 billion euros, the highest ever in the history of the company since it was founded in 1949. Responsible first and foremost for this increase in turnover were GEFCO’s activities in Central and Western Europe as well as in South America, with the company’s results for the rest of the world remaining stable.
The Group’s profitability also improved, and is in line with industry standards. Thanks to its very low debt levels, GEFCO has been able to generate a sustained and regular free cash-flow over the years which shielded it from the recession of 2009 as well as the slowdown in the European automotive market in 2012 and 2013. This sound financial health is what provides the Group with the flexibility necessary for its future growth.
All the results achieved by GEFCO in 2013 confirm that its “asset-light” business model is the right one and underline the efficiency of its flexible costs structure.
Furthermore they show that the Group has secured its place among the top ten logistics integrators in Europe. GEFCO is also number one in Europe for Finished Vehicles Logistics.
2013, a year of major changes for GEFCO
2013 was notable for the major changes at GEFCO, following the sale of 75% of its capital by PSA Peugeot Citroën at the end of 2012 to the JSC Russian Railways group (RZD), with GEFCO remaining the exclusive logistics provider for PSA in the world.
The partnership with the RZD group provides GEFCO with a long term strategic ally and new growth opportunities, in Russia and in the countries of the Commonwealth of Independent States.
As a result, GEFCO benefits from easier access to the leading Russian and international manufacturers who operate in these markets, and can help them optimise their supply chains and improve productivity. The partnership with RZD has provided GEFCO with another growth driver: the development of trade links between Asia, Russia and Europe through rail transport.
In order to accelerate its growth in this region, GEFCO has restructured the way it is organised and created a dedicated geographical zone assembling a “cluster” of 50 logistics experts, based in Moscow and who are already operational. In so doing, GEFCO is now in a position to add its expertise in the Russian market and in trade with Russia to the range of services it offers.
Diversification at the heart of the Group’s strategy
2013 also saw the start of the 7 year contract with General Motors (GM), under the terms of which GEFCO is to manage and optimise the entire GM logistics chain in Europe and in Russia. This contract, which concerns over one million vehicles a year, has made GEFCO the no. 1 European logistics integrator in the automotive sector in Europe, despite the mixed fortunes which have beset this market.
Every year the Group continues to diversify its customer portfolio. The turnover generated from key international accounts – other than PSA Peugeot Citroën – and from medium sized companies, has constantly increased and exceeded the 2 billion euro mark in 2013. This revenue now accounts for 50% of the Group’s total turnover, compared to 42% in 2012. In addition to car manufacturers and suppliers, GEFCO boasts customers from a variety of sectors, in particular the aviation and industrial machinery (“High and Heavy”) sectors.
Known for the reliability of its services, GEFCO is able to adapt the expertise it has acquired in automotive logistics – undoubtedly one of the most demanding sectors today – to the globalisation of industrial flows and the needs of its international customers who are confronted with complex and global issues.
With its operations organised into five business lines (Overland, Overseas, Warehousing & Reusable packaging, Finished Vehicles Logistics and Customs & tax representation) GEFCO is able to cover the whole supply chain and to offer end-to-end solutions to meet the most demanding requirements.
The Group can rely on its fully integrated information systems to uniformly support all its activities and operations throughout the world. The Group is also concentrating on developing its own research and engineering departments as well as its logistics engineering capabilities in order to increase the added value of its services and improve both its own productivity and that of its customers.
Strong and sustained international growth
GEFCO opened three new subsidiaries in 2013, in Dubai, Mexico and in Croatia, thus underlining its intention to help its major international customers achieve new sales success. Today the Group has a network of 37 subsidiaries (as opposed to 9 in 1999) completed by a network of partners and sales representatives providing it with a presence in 150 countries.
It is this global network which enables the Group to manage the logistics flows in the countries where it operates and to leverage the potential of numerous strong growth regions, such as South America, China, India, Central and Eastern Europe, the Middle East and Russia.
These are the strengths and opportunities that GEFCO intends to exploit as part of its ambitious strategy for growth; the Group aims to achieve a turnover of 8 billion euros by 2020. In the words of Luc Nadal: “We plan to double our turnover by accelerating our geographical and cross-sector diversification and through external growth initiatives”.
